Sweet Dreams Corp.
Income Statement
For the Year Ended Dec. 31 2020
	2020	2019
Sales	3,074,000	2,567,000
Cost of Goods Sold	2,088,000	1,711,000
Gross Profit	986,000	856,000
Selling and G&A Expenses	294,000	295,000
Fixed Expenses	35,000	35,000
Depreciation Expense	239,000	223,000
EBIT	418,000	303,000
Interest Expense	93,000	91,000
Earnings Before Taxes	325,000	212,000
Taxes	94,000	64,000
Net Income	231,000	148,000

Sweet Dreams Corp.
Balance Sheet
As of Dec. 31 2020
Assets	2020	2019
Cash	431,000	339,000
Accounts Receivable	503,000	365,000
Inventories	289,000	300,000
Total Current Assets	1,223,000	1,004,000
Gross Fixed Assets	4,669,000	4,322,000
Accumulated Depreciation	2,295,000	2,056,000
Net Fixed Assets	2,374,000	2,266,000
Total Assets	3,597,000	3,270,000
Liabilities and Owners' Equity
Accounts Payable	382,000	270,000
Short-term Notes Payable	79,000	99,000
Accrued Expenses	159,000	114,000
Total Current Liabilities	620,000	483,000
Long-term Debt	1,023,000	967,000
Total Liabilities	1,643,000	1,450,000
Common Stock	819,000	808,000
Retained Earnings	1,135,000	1,012,000
Total Shareholder's Equity	1,954,000	1,820,000
Total Liabilities and Owners' Equity	3,597,000	3,270,000

Ratio	Industry Value	Firm Value	Ratio	Industry Value	Firm Value
Current Ratio	2.50x		Debt to Equity	0.90x
Quick Ratio	0.60x		Times Interest Earned	2.50x
Inventory Turnover Ratio	6.50x		Cash Coverage Ratio	3.50x
Accounts Receivable Turnover Ratio	8.00x		Net Profit Margin	5.00%
Average Collection Period	40.00 days		Return on Total Assets	5.00%
Total Asset Turnover	2.00x		Return on Equity	8.00%
Total Debt Ratio	50.00%		Return on Common Equity	10.00%

Industry Value Firm Value

0.90x

2.50x

3.50x

5.00%

5.00%

8.00%

10.00%

Please use Excel to complete the following:

(a) Please calculate all the ratios given below for the year 2020

(b) Benchmark each ratio using the Industry Average given below [Bench marking means comparing each ratio and stating whether it is good or poor]

(c) Calculate Z score for the firm assuming it to be a private firm